However some best rated companies and institutions are offering interest rates higher than banks. Below are the details of 7 companies which have high credit rating and offering interest rate more than banks on their fixed deposit schemes.

SBI is offering 6.40% to 6.75% for 1 to 10 years fixed deposits while ICICI Bank is offering 6.50% to 6.75% on their FDs.

5. Post Office Time Deposit

Post office Time Deposit (Fixed Deposit) Account can be opened in any post office. The interest rates are reset at the start of every financial year. As of today they are offering higher interest rates than most of the banks. Once you have deposited the money, the interest rate is locked.

Key Points before Investing:

Premature Withdrawal is possible on the above company fixed deposits but it requires much more paper work and follow ups. Even the penalty may be more severe as compared to banks

Opening Fixed Deposit is more tiresome as you need to fill forms, visit company branch or get hold of their agents.Also have to give fresh documents for KYC. Bank FDs can be opened online, which is much more convenient.

To Conclude:

The above companies are offering have the highest credit rating (which means very low chances of default) and are offering interest rates 1% to 2% higher than the bigger banks. You must look into them for your fixed income portfolio especially if they have easy approachable branches or agents near you.

Have you invested in these companies FDs before? How was your experience? Please share in comments section…

Investing in Post Office fixed deposit is cumbersome. You need to queue up in post office and entire process of investment/redemption is still offline and not a pleasant experience. Also when you change residence, you’ii need to transfer your deposits to new post office or come back to original post office to redeem your investment. However in case of bnaks FD can be created/redeemed online. Even in offline mode you can bank from different branches on the bank! All in all banks are easy option!

Thank you for pointing this out. Actually the post is updated every month and if there is a change in interest rate in the month, it might not correctly reflect. Hence its good idea to cross verify on company website.

As you pointed out, I have updated the recent rates. We need more such active readers. Thank you again 🙂

Equity is totally different asset class. FD is for fixed returns and for limited duration. In equity the returns could be volatile and you might loose 25% in matters of weeks. As for risk is compared investing in top rated “AAA/AA+” companies is safe.

Subscribe

The website is not affiliated to any company, agent or brokers for selling/ recommending investments. All the information in the blog is for educational and informational purpose only. Please consult a qualified financial planner and do your own due diligence before making any investment decision.